This is a summary of the annual report
for the Raytheon Company Pension Plan for
Salaried Employees, EIN 95-1778500,
Plan No. 024, for the period January 1, 2007 through December 31,
2007. The annual report has been filed with the Employee Benefits
Security Administration, U.S. Department of Labor, as required under the
Employee Retirement Income Security Act of 1974 (ERISA).
Basic Financial
Statement
Benefits under the plan are provided through a trust fund. Plan
expenses were $399,186,841. These
expenses included $11,041,102 in administrative expenses and
$388,145,739 in benefits paid to
participants and beneficiaries. A total of 91,468 persons, including 38,209 active
participants, 21,451 employees in payment status, 28,511 terminated
individuals who are due a future benefit, and 3,297 beneficiaries, were
participants in or beneficiaries of the plan at the end of the
plan year, although not all of these persons had yet earned the right to receive benefits.
The value of plan assets, after subtracting liabilities of the plan,
was $6,467,137,085 as of December 31, 2007, compared to $6,118,025,544 as of January 1, 2007.
During the plan year the plan
experienced an increase in its net assets of $349,111,541. This increase
includes
unrealized appreciation and depreciation in the value of plan assets;
that is, the difference between the value of the plan's assets at the
end of the year and the value of the assets at the beginning of the year or the cost of assets acquired
during the year. The plan had total income of $749,672,822 including employer contributions of
$294,707,244, employee contributions of $2,892,909, earnings from
investments of $431,274,782 and other income of
$20,797,887. In addition, the plan had a net transfer-out of $1,374,440,
including
net transfers-in from other Raytheon sponsored plans of $3,342,266 and
net
transfers-out to other non-Raytheon sponsored_ plans of $4,716,706.
Minimum Funding Standards
An actuary's statement shows that enough money was contributed to the
plan to keep it funded in accordance with the minimum funding standards
of ERISA.
Your Rights To Additional Information
You have the right
to receive a copy of the full annual report, or any part thereof, on
request. The
items listed below are included in that report:
an accountant's report;
financial
information and information on payments to service providers;
information regarding any common or
collective trusts, pooled separate
accounts, master trusts or 103-12 investment entities in which the plan
participates; and
4. actuarial information regarding the funding of the plan.
To obtain a copy of
the full annual report, or any part thereof, write or call the Raytheon
Benefit Center,
which provides these copies on behalf of the plan administrator, at P.O.
Box 7825,
Ocala, FL 34478-7825, telephone 1-800-358-1231.
You also have the right to receive from the plan administrator, on
request and at no charge, a
statement of the assets and liabilities of the plan and accompanying
notes, or a statement of income and expenses of the plan and accompanying
notes, or both. If you request a copy
of the full annual report from the plan administrator, these two
statements and accompanying notes will be included as part of that report.
You also have the
legally protected right to examine the annual report at the main office
of the plan (Raytheon Company,
Global Headquarters, Waltham Woods, 870 Winter Street, Waltham, MA
02451-1449) and at the U.S. Department of Labor in Washington, D.C., or to
obtain a copy from the U.S. Department of Labor upon payment of copying
costs. Requests to the Department should be addressed to: Public
Disclosure Room, Room N-1513, Employee
Benefits Security Administration, U. S. Department of Labor, 200
Constitution Avenue, N.W.,
Washington, D.C. 20210.
Our health benefits do not have the same protection as
pension benefits which are partially protected by the Employee Retirement
Income Security Act (ERISA). We are dependent on the Company
carrying out its contracts to provide medical benefits. We intend to
continue to make sure that the Company is aware of member concerns about the
high cost of health benefits and the dwindling level of coverage provided by
the current retiree plan. There are employee groups that have different
coverage or no coverage (as compared to the legacy Raytheon group) and our
goal is to understand these situations and provide help and support and a
voice for their concerns to the extent possible.
We believe the popularity of the various health related
articles in past issues of our newsletters have resulted in more informed
decision making by our fellow retirees. We intend to continue that
service and in fact improve and expand it to cover more items of interest to
retirees throughout our nation.
The first priority of the Association is the preservation
of the current level of pension benefits whether those benefits are provided
through the legacy Raytheon Salaried or Hourly pension plans or through
other pension plans. As with retiree health, we recognize that we do not
have complete visibility on all pension plans. We will work to close that
knowledge gap and serve all retirees of the Company. We intend to monitor
any pension plan amendments and all other aspects of plan performance such
as the plan investment experience and the Company’s funding policy that
directly affect the security of the promised benefits.
The directors are aware of a recent plan amendment to the
Raytheon Salaried Plan which effectively cuts off membership to new hires.
In taking this step, Raytheon is following a troublesome national trend to
cut back defined pension plan benefits. It is our goal to make the Company
more thoughtful in dealing with the pension benefits of both active and
retired employees. We will do that with your help by trying to stay out in
front of Company initiatives and we must make sure that the Company knows
that retirees are former employees and stakeholders in the Company just as
shareholders are.
You can help by informing the Association of any changes
that come to your attention, e.g., notices posted on Company bulletin boards
about plans. As an Association we will work to gather plan documents,
financial, actuarial and other information about the Plans and the Company.
We will employ actuaries and accountants, if appropriate, in order to make
employees and retirees less helpless in the face of Company cost cutting.
Another goal is to make sure that pension benefits are
being administered correctly and efficiently. Please keep the
Association informed of problems. We cannot directly solve problems but we
will try to point you in the right direction and we will keep a tally and
make sure the Company is aware of common deficiencies.
Since its inception, the Association has worked to have
the Company provide a cost of living increase in pension payments to
retirees even if only to those retirees with the greatest need.
The Company has answered the request with a clear denial
of any intent to consider a COLA. The Association will not give up on the
goal of achieving some contribution to the financial relief of the most
deserving of our fellow retirees. The optimum situation would be one where
the Company is convinced that dealing with the plight of retirees in some
way is in their interest. The Association will work to that end. As with
other goals, the more information the Association has, the more it can do to
formulate a plan of action. Please keep us informed of extreme situations.
